Matcha Tea Market Size Worth $2.26 Billion by 2025 | CAGR: 4.7%

August 2019 | Report Format: Electronic (PDF)

The global matcha tea market size is expected to reach USD 2.26 billion by 2025, according to a new report by Grand View Research, Inc. It is anticipated to register a CAGR of 4.7% during the forecast period. Factors such as increasing awareness regarding consumption of natural and organic products and rising popularity of healthy beverages are anticipated to fuel the growth.

Growing popularity of matcha tea on account of its antioxidant content, fat burning properties, and the ability to improve focus and energy is anticipated to drive the market growth. Matcha tea has a unique amino acid called L-Theanine which induces calmness. It also contains vitamins A, C, E, K, and B and minerals such as selenium, chromium, zinc and magnesium. It also contains high amount of dietary fibers and 137 times more antioxidants than regular green tea which makes it a complete health drink. The product promotes detoxification, weight loss, gastrointestinal functioning, cardiovascular health, and prevention from eye disorders and diseases like cancer. Awareness regarding these advantages are projected to fuel the demand for matcha tea over the forecast period.

Asia Pacific held the largest market share in 2018 and is anticipated to continue its dominance in the forthcoming years, due to the presence of prominent tea consuming cultures such as China and Japan. Matcha tea is obtained from shade-grown tencha leaves largely cultivated in Japan on account of the country’s distinct soil and environment, especially in Kyoto and Nishio. Cultivation of premium product under extreme conditions and through vigilant processing impute to the high price of the product. Increasing popularity in North America and Europe is anticipated to further fuel the market growth.

Prominent market players focus on product innovation to derive the most out of the market. For instance, in November 2018, Starbucks Coffee Company launched a new Osaka Meccha Matcha Frappuccino with an extra matcha punch. Furthermore, in March 2018, Matchaah, Inc., introduced carbonated matcha tea beverages, especially for non-tea drinkers incorporating fruity flavors namely, Lime Mint, Mango, Raspberry, Pineapple, Coconut, and others. In April 2019, Laird Superfood introduced Matcha InstaFuel. The product is produced by mixing premium matcha powder with Laird Superfood Original Creamer to gain a range of natural antioxidants, vitamin C, iron, calcium, and other nutrients.

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Further key findings from the report suggest:

  • Instant premix product segment is projected to ascend at the fastest CAGR of 5.1% over the forecast years

  • Classic grade held the leading market share of over 56.9% in 2018

  • North America led the global matcha tea market in 2018 with a revenue share of 25.4% and is projected to continue leading in near future

  • The market is highly competitive in nature with the presence of main players including Tenzo Tea, Inc.; aiya-THE TEA; Nestlé; Tata Global Beverages Ltd.; Unilever; ITO EN, LTD.; Marukyu-Koyamaen; and Encha

Grand View Research has segmented the global matcha tea market on the basis of product, grade, and region:

Matcha Tea Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Powder

  • RTD Beverage

  • Instant Premixes

Matcha Tea Grade Outlook (Revenue, USD Million, 2015 - 2025)

  • Classic

  • Ceremonial

  • Culinary

Matcha Tea Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • India

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa

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